No claims discount UK motor insurance

No claims discount bonus is one of the largest saving that you can make on your UK motor insurance as it rewards safe and careful drivers. To keep your insurance cheap we recommend protecting your no claims bonus.

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No-claims discount (NCD) has such a substantial effect on the premium that it can be a disaster to lose it. Many companies recognise that even the most careful and safe drivers can have a stroke of bad luck once in a while and will, for a small charge, offer a "protected discount" once you have reached the maximum level.

For every year of claim free driving you will earn a discount towards the cost of renewing your motor insurance, up to a maximum of 5 years. This is subject to you providing documentary evidence from a previous insurer. The No Claim Discount can only be used on one policy at a time so the other policy has to be lapsed or canceled before you can use it on this one. You cannot share it across two policies.

Typical no claims discount onus rates are

• Intoductionary offer, typically 25% discount
• 1 year no claim bonus, typically 35% discount
• 2 years no claim bonus, typically 45% discount
• 3 years no claim bonus, typically 55% discount
• 4 years no claim bonus, typically 65% discount
• 5 years no claim bonus, typically 67%/70% discount or 60% with another insurer.

Most insurers require you to report any incident that could result in a claim as a condition of insurance, this is to protect the policyholder and insurer. Generally, any incident could result in a claim by a third party and since the whole reason for having insurance is indemnity, you need to pass that risk over to your insurance company by telling them what happened. And just reporting an incident doesn’t necessarily mean the insurance will have to pay anything out.